Article 29-7 (Tax Credit for Businesses Increasing Employment)

Where the number of regular employees (hereinafter referred to as "regular employees" in this Article) as determined by Presidential Decree in a taxable year ending on or before December 31, 2024, increases compared to the number of regular employees in the immediately preceding taxable year, a domestic corporation (excluding domestic corporations operating businesses prescribed by Presidential Decree, such as businesses in the consumption and service industry, etc.; hereinafter the same applies in this Article) shall be allowed a credit against income tax (limited to income tax on business income) or corporate tax for the taxable year and for taxable years up to the date 1 year (or 2 years for small and medium-sized enterprises and mid-sized enterprises) after the end of the taxable year, in an amount equal to the sum of the amounts under the following subparagraphs: 1. The amount obtained by multiplying the increased number of regular employees, such as young regular employees, disabled employees, and employees aged 60 or older (hereinafter referred to as "young employees, etc." in this Article), by 4 million won [8 million won for mid-sized enterprises, and 11 million won for small and medium-sized enterprises (12 million won for small and medium-sized enterprises that increased employment in areas outside the Seoul Metropolitan Area)]. Provided, however, that for the period from the taxable year ending December 31, 2021, to the taxable year ending December 31, 2022, the amount obtained by multiplying the increased number of young employees, etc. in areas outside the Seoul Metropolitan Area (limited to the increased number of regular employees) by 5 million won (9 million won for mid-sized enterprises, and 13 million won for small and medium-sized enterprises). 2. The increased number of regular employees other than young employees, etc. (limited to the increased number of regular employees) × 0 won (4.5 million won for mid-sized enterprises, and the amount under the following sub-items for small and medium-sized enterprises): a. In case of increase in areas within the Seoul Metropolitan Area: 7 million won b. In case of increase in areas outside the Seoul Metropolitan Area: 7.7 million won

Deleted.

If the total number of regular employees or the number of young employees, etc. of a domestic corporation that has received income tax or corporate tax credit under paragraph ① decreases compared to the taxable year in which the credit was first received, for the taxable year ending 3 years after the end of the taxable year in which the credit was first received, paragraph ② shall apply. Provided, however, that paragraph ② shall not apply to the taxable year ending December 31, 2020.

If, for a domestic corporation that has received the application of paragraph ⑥, the total number of regular employees or the number of young employees, etc. in the taxable year ending December 31, 2022, decreases compared to the taxable year in which the credit was first received, paragraph ② shall apply for taxable years up to the end of the taxable year 3 years after the end of the taxable year in which the credit was first received.